Calculating your income tax in Pakistan has become much easier in 2025. The Federal Board of Revenue (FBR) provides updated tax slabs and an online calculator to help salaried individuals, business owners, and freelancers estimate their annual tax liability. This guide covers everything about the FBR tax calculator and Pakistan income tax slabs for 2025-26.
Pakistan Income Tax Slabs 2025-26 (Salaried Individuals)
- Up to Rs. 600,000: No tax (exempt)
- Rs. 600,001 – Rs. 1,200,000: 5% on amount exceeding Rs. 600,000
- Rs. 1,200,001 – Rs. 2,200,000: Rs. 30,000 + 15% on amount exceeding Rs. 1,200,000
- Rs. 2,200,001 – Rs. 3,200,000: Rs. 180,000 + 25% on amount exceeding Rs. 2,200,000
- Rs. 3,200,001 – Rs. 4,100,000: Rs. 430,000 + 30% on amount exceeding Rs. 3,200,000
- Above Rs. 4,100,000: Rs. 700,000 + 35% on amount exceeding Rs. 4,100,000
How to Use FBR Tax Calculator 2025
- Visit iris.fbr.gov.pk and login with your NTN
- Go to Resources → Tax Calculator
- Enter your annual salary or income
- Add any deductions — Zakat, donations, life insurance premium
- The calculator automatically shows your tax liability
Quick Tax Calculation Formula
For salaried individuals earning Rs. 1,200,000 per year (Rs. 100,000/month):
- Annual income: Rs. 1,200,000
- Taxable amount above Rs. 600,000: Rs. 600,000
- Tax at 5%: Rs. 30,000 annually
- Monthly tax deduction: Rs. 2,500
Tax Deductions You Can Claim
- Zakat: Full amount paid deducted from taxable income
- Charitable donations: Up to 30% of taxable income
- Life insurance premium: Deductible up to certain limits
- Education expenses: Tuition fees for children
- Mortgage interest: Interest on housing finance loans
How to Become an Active Taxpayer (ATL)
Filing your tax return puts you on the FBR Active Taxpayer List (ATL), which gives you lower withholding tax rates on all transactions. Check your ATL status at fbr.gov.pk/ams/
Frequently Asked Questions
How much tax do I pay on Rs. 50,000 salary per month in Pakistan 2025?
On an annual salary of Rs. 600,000 (Rs. 50,000/month), you pay zero income tax as it falls below the exemption threshold.
How much tax on Rs. 100,000 salary per month Pakistan 2025?
On Rs. 1,200,000 annual salary, you pay Rs. 30,000 per year (Rs. 2,500/month) at the 5% slab rate.
Is there income tax on freelancing income in Pakistan 2025?
Yes, freelancers must register with FBR and file returns. However, foreign remittances received through banking channels are taxed at a reduced rate of 0.25% under the IT export policy.
